Nigerian businessman Tony Elumelu’s UBA earns $283.6 million in profit in 2021

Omokolade Ajayi -

United Bank for Africa Plc (UBA), a leading pan-African financial services group led by Nigerian businessman Tony Elumelu, has reported a profit of N118.68 billion ($283.6 million) at the end of 2021, as the group continues to benefit from a sustained increase in gross earnings due to its pan-African business diversification.

The bank’s gross loans and customer deposits increased from N2.63 trillion ($6.28 billion) and N6.09 trillion ($14.55 billion) in 2020 to N2.83 trillion ($6.76 billion) and N7.02 trillion ($16.77 billion), respectively, buoyed by momentum from the steady recovery in economic activity.

According to the group’s audited financial statement, profit grew 8.7 percent from N109.16 billion ($260.9 million) in 2020 to N118.68 billion ($283.6 million) in 2021.

Earnings growth in the single digits by the end of 2021 was backed by cost-effective methods implemented by the management during the year, as well as a seven-percent rise in gross earnings from N616.84 billion ($1.47 billion) to N660.22 billion ($1.58 billion).

UBA’s assets climbed by 11 percent, growing from N7.69 trillion ($18.4 billion) in 2020 to N8.54 trillion ($20.43 billion) in 2021, owing mostly to an increase in customer deposits, while shareholder funds rose by 12 percent to N776.17 billion ($1.85 billion) driven by the increase in earnings.

As a result of the strong financial performance, the bank’s board of directors proposed a final dividend of N0.80 ($0.00191) per share, which, when coupled with the interim dividend of N0.20 ($0.000478) per share, brings the total payment to shareholders to N1.0 ($0.00239) per share.

UBA is a Nigerian financial services conglomerate with operations in 20 African nations, as well as the United Kingdom, United States and France.

Elumelu, one of Africa’s most influential businessmen, controls a substantial 6.39-percent share in the firm. He derives a total wealth of $46.9 million (N18.4 billion) from his stake in the pan-African bank.